Walker & Dunlop, Inc · NYSE:WD
Walker & Dunlop — Q4 2024 Earnings Presentation
15 slides from Walker & Dunlop's earnings presentation, Feb 13, 2025
Slide 1: Q4 2024 Earnings
Q4 Q4 2024 EARNINGS February 13, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements Some of the statements contained in this presentation may constitute forward-looking statements within the meaning of the federal securities laws. Forward-looking statements relate to expectations, projections, plans and strategies, anticipated events or trends and similar
Slide 3: Strong Q4'24 Financial Results Reflect Recovering CRE Market
S T R O N G Q 4 ’ 2 4 F I N A N C I A L R E S U LT S R E F L E C T RECOVERING CRE MARKET Q4’24 Consolidated Key Performance Metrics Total Transaction Volume Diluted EPS Adjusted EBITDA1 Adjusted Core EPS2 (in millions) (in thousands) $1.32 $1.42 $13,447 $94,577 $1.34 $87,582 $0.93 $9,299 +45% +42% +
Slide 4: Growth Across Nearly All Products Reflects Q4 Surge in Activity
G R O W T H A C R O S S N E A R LY A L L P R O D U C T S REFLECTS Q4 SURGE IN ACTIVITY Total Transaction Volume (in millions) $5,000 $4,894 $4,500 $4,000 $3,451 $3,500 $3,226 $3,000 $2,885 $2,877 $2,500 $2,000 $1,692 $1,553 $1,500 $1,308 $1,000 $500 $317 $219 $116 $207 $- Fannie Mae Freddie Mac HUD
Slide 5: Average Transaction Volume per Banker/Broker
C O N T I N U E D F O C U S O N G R O W I N G P R O D U C T I V I T Y T O WA R D S PEAK LEVELS AS TRANSACTION ACTIVITY RECOVERS CRE activity was at a peak in 2021, with record levels of transaction activity Average Transaction Volume per Banker/Broker Pre-pandemic, 2019 W&D has the opportunity repre
Slide 6: Strong 2024 Financial Performance Reflects WD's Durable Business Model
STRONG 2024 FINANCIAL PERFORMANCE REFLECTS W D ’s D U R A B L E B U S I N E S S M O D E L FY’24 Consolidated Key Performance Metrics Total Transaction Volume Diluted EPS Adjusted EBITDA1 Adjusted Core EPS2 (in millions) (in thousands) $39,906 $328,549 $4.97 $3.19 $3.18 $300,123 $4.68 $32,987 +21% <1
Slide 7: Capital Markets: Q4'24 Key Financial Metrics Year-over-Year
C A P I TA L M A R K E T S Q4’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR Q4’24 Q4’23 % Change (in thousands) Consolidated Total Transaction Volumes $13,446,822 $9,299,231 45% Total Revenues $181,062 $129,081 40% Net Income $40,497 $17,519 131% Adjusted EBITDA1 $4,173 ($1,608) (360%) • Increase in total
Slide 8: Servicing & Asset Management (SAM): Q4'24 Key Financial Metrics
S E RV I C I N G & A S S E T M A N A G E M E N T ( “ S A M ” ) Q4’24 KEY FINANCIAL METRICS YEAR-OVER-YEAR (in thousands) Q4’24 Q4’23 % Change Total Revenues $157,298 $139,667 13% Net Income $36,553 $34,071 7% Adjusted EBITDA1 $123,768 $110,543 12% • Ended Q4’24 with total managed portfolio of $153.7
Slide 9: Impact of Unique Transactions on Consolidated Financial Results
I M PA C T O F U N I Q U E T R A N S A C T I O N S O N C O N S O L I D AT E D F I N A N C I A L R E S U L T S Income or (reductions of income) in thousands Asset Management Fee Earnout Capital Markets Asset Sales Loan Repurchases Total Adjustments Adjustments1 Income from $- $- $- $5,125 $5,125 Oper
Slide 10: Full-Year 2025 Financial Outlook
FULL-YEAR 2025 FINANCIAL OUTLOOK 2024 ACTUAL 2025 GROWTH OUTLOOK HIGH SINGLE-DIGITS TO Diluted Earnings Per Share <+1% DOUBLE-DIGITS Adjusted Core Earnings Per Share +6% FLAT TO HIGH SINGLE-DIGITS Adjusted EBITDA +9% FLAT TO HIGH SINGLE-DIGITS 2025 Financial Outlook is based on Walker & Dunlop’s mar
Slide 11: Appendix
APPENDIX
Slide 12: Consolidated Adjusted EBITDA Reconciliation to Net Income
C O N S O L I D AT E D A D J U S T E D E B I T D A R E C O N C I L I AT I O N T O C O N S O L I D AT E D N E T I N C O M E Three months ended Three months ended Year ended December Year ended December (in thousands) December 31, 2024 December 31, 2023 31, 2024 31, 2023 Walker & Dunlop Net Income $44
Slide 13: Adjusted Core EPS Reconciliation
A D J U S T E D C O R E E P S R E C O N C I L I AT I O N Three months ended Three months ended Year ended December Year ended December (in thousands), except per share amounts December 31, 2024 December 31, 2023 31, 2024 31, 2023 Walker & Dunlop Net Income $44,836 $31,599 $108,167 $107,357 Adjustmen
Slide 14: Adjusted EBITDA Reconciliation to Net Income by Segment: Capital Markets
A D J U S T E D E B I T D A R E C O N C I L I AT I O N T O NET INCOME BY SEGMENT Capital Markets Three months ended Three months ended (in thousands) December 31, 2024 December 31, 2023 Walker & Dunlop Net Income $40,497 $17,519 Adjustments: Income tax expense 11,586 6,362 Interest expense on corpor
Slide 15: Adjusted EBITDA Reconciliation to Net Income by Segment: SAM
A D J U S T E D E B I T D A R E C O N C I L I AT I O N T O NET INCOME BY SEGMENT SAM Three months ended Three months ended (in thousands) December 31, 2024 December 31, 2023 Walker & Dunlop Net Income $36,553 $34,071 Adjustments: Income tax expense (benefit) 7,007 11,269 Interest expense on corporat